China can only be so neutral in wars now

The China Letter: March 21, 2022

Challenges facing China on the international stage, America busting a ring of alleged Chinese spies, the new cost of COVID-19 lockdowns, Hong Kong’s security law being wielded in a new direction, and TikTok working on a strategy to appease the White House. It was just another week in the ongoing history of China news for our strange times.

---

The neutrality dilemma

POLITICOEurope @POLITICOEurope

The US has explicitly warned China if they decide to supply Moscow with arms, they will swiftly be met with sanctions. But as the world’s second largest economy, China could inflict painful economic counterattacks if they felt threatened.

bit.lyChina finds itself in a tricky position — stuck between the White House and the KremlinThe Biden administration is telling Beijing that it’s courting disaster by supporting Putin. But China may be too big to sanction.

President Xi Jinping is evidently trying to navigate the fact that China is now too important to stay neutral in global conflict, yet too economically powerful to remain neutral. A cable sent by the U.S. to allies in Europe and Asia indicated assistance was offered to Russia in its war with Ukraine, a claim which China summarily denied before this call was placed:

ABC News @ABC

BREAKING: Pres. Biden "described the implications and consequences if China provides material support to Russia as it conducts brutal attacks against Ukrainian cities and civilians" in call with Chinese Pres. Xi, White House says. abcn.ws/3MZJRHF

---

Spying across America

CNN Politics @CNNPolitics

Justice Department files charges against a retired Chinese intelligence agent for trying to smear a US congressional candidate to prevent him from being elected

cnn.itJustice Department charges 5 people with helping Chinese government to spy on dissidents in USThe Justice Department has charged five people with helping the Chinese Communist Party stalk, harass or spy on political dissidents in the US, including a congressional candidate and a Los Angeles sculpture artist, according to new court filings and a press release.

Pro-democracy dissidents in New York City, Indiana and California were allegedly targeted by the Chinese government for spying, based on charges that targeted a ring of three men. Two others were similarly charged, with one case involving a current run for U.S. Congress by Xiong Yan, a Tiananmen protester.

---

The coronavirus revival

BBC News (World) @BBCWorld

Businesses shut as officials in China widen Covid lockdowns

bit.lyChina: Businesses shut as officials widen Covid lockdownsToyota, Volkswagen and Apple supplier Foxconn are among firms halting their operations.

Some of the biggest lockdowns in the history of the pandemic took place in China. But concerns about the tech supply chain being disrupted due to factory shutdowns were alleviated as they eased in Shenzen. The city of 17 million people was blaming its neighbour for outbreaks of “stealth Omicron,” although Hong Kong was holding off on restrictions.

---

Hong Kong’s latest target

Hong Kong Free Press HKFP @hkfp

Security Bureau threatens UK-based Hong Kong Watch founder with life imprisonment; NGO says it won’t disband hongkongfp.com/2022/03/14/sec…

The national security law is now being wielded at a British watchdog group, but Hong Kong Watch chief Benedict Rogers says he won’t capitulate to authorities. It’s now one of the first foreign organizations to be charged.

---

TikTok on its tip-toes

Emily Baker-White @ebakerwhite

Over the past few weeks, I've talked to more than 20 current and former employees at TikTok and its parent company, ByteDance. Here’s what I learned about Project Texas, the company’s big bet to assuage fears about its connection to China.

buzzfeednews.comInside Project Texas, TikTok’s Big Answer To US Lawmakers’ China FearsTikTok is rebuilding its systems to keep US user data in the US and putting a new US-based team in control. But for now, that team reports to executives in China.

The creation of clones of TikTok’s internal systems is being designed in response to concerns over U.S. user data being the property of the app’s Chinese parent company, ByteDance. An order to sell the service to Oracle and Walmart was shelved upon last year’s change in the White House. But those privacy concerns are accelerating again.

---

The China Letter is produced by the Canadian Freedom Institute, a think tank based in Canada. We produce the China Letter every week to keep you informed and to press the ideas of free markets and free people not only in China but around the world. Please consider donating to keep this newsletter running!